Solactive launched two new indices in the infrastructure space, the Solactive global infrastructure high income index and the Solactive global infrastructure income index. These indices offer exposure to an investible basket of infrastructure companies from developed markets screened for high dividend yield and low volatility. The Solactive global infrastructure high income index offers more focus on dividend income, by only selecting stocks that are expected to pay a dividend in the next quarter. The indices are licensed to J.P. Morgan who will develop structured products for their distributor clients.
Considering the potential momentum that infrastructure companies could develop, the Solactive global infrastructure high income index and the Solactive global infrastructure income index provide exposure to companies likely to benefit from plans of increased infrastructure spending in developed economies.
Henning Kahre, head of research at Solactive AG commented, “The new Solactive Index provides exposure to rising infrastructure spending globally. Additional index features ensure that the index is suitable for structured products. We are currently seeing a lot of demand for the infrastructure theme across client groups and for different types of investment products.”
Arnaud Jobert, co-head of investible indices at J.P. Morgan said, “Increased infrastructure spending is a global theme that presents investors with the opportunity to take a long-dated view with defensive positioning, and the Solactive infrastructure index series adds to this by providing low volatility and high dividend selection. While we remain in a low Euro interest rates environment, products based on the Solactive indices will also provide investors with relatively high levels of capital protection.”
Both indices are calculated as price return and gross total return indices and are denominated in both € and $. The indices are composed of 30 infrastructure-related stocks subject to country and industry diversification filters weighted according to inverse volatility. The composition is readjusted quarterly.